METALS-London metals gain after Trump tariff reprieve

By Michele Pek

SINGAPORE, May 26 (Reuters) - Prices of metals in London rose on Monday after U.S. President Donald Trump rescinded his threat of a 50% tariff on imports from the European Union starting June 1, buoying market sentiment.

Three-month copper on the London Metal Exchange CMCU3 gained 1.19% to $9,614 per metric ton by 0256 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 nudged 0.73% higher to 78,400 yuan ($10,929.88) a ton.

On Sunday, Trump agreed to extend his deadline for trade talks until July 9 from the June 1 limit he set on Friday after European Commission President Ursula von der Leyen said the bloc needed more time to "reach a good deal".

The supply of copper raw materials is currently tight, which may drive copper prices higher in the short term, said broker Hexun Futures.

Moreover, copper inventories in warehouses monitored by the Shanghai Futures Exchange CU-STX-SGH fell 9% to 98,671 tons last week.

Still, tariff uncertainty may continue to restrict the performance of copper prices, said broker Everbright Futures.

Among other London metals, aluminium CMAL3 climbed 0.41% to $2,466 a ton, zinc CMZN3 firmed 0.56% to $2,712, lead CMPB3 added 1.22% to $1,994 and nickel CMNI3 rose 0.49% to $15,570. Tin CMSN3 firmed 0.89% to $32,665.

SHFE aluminium SAFcv1 ticked up 0.15% to 20,195 yuan a ton, lead SPBcv1 was up 0.36% at 16,835 yuan, while zinc SZNcv1 eased 0.49% to 22,190 yuan, nickel SNIcv1 edged 0.2% lower to 122,640 yuan, and tin SSNcv1 fell 0.26% to 263,990 yuan.

($1 = 7.1730 Chinese yuan)

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